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Strength in financial and energy sectors was offset by weakness in health care. Meanwhile, emerging markets country ETFs in Asia and Latin America continued to climb toward their 200-day moving averages.
Here are 7 ETFs You Need to Know for Monday.
Among the most widely traded exchange-traded funds providing exposure to the financial sector, the Financial Select Sector SPDRS ETF (XLF | Quote | Chart | News | PowerRating) was up by more than 2% late in trading on Friday. Gains in Wells Fargo (WFC | Quote | Chart | News | PowerRating), Goldman Sachs (GS | Quote | Chart | News | PowerRating) and Bank of America (BAC | Quote | Chart | News | PowerRating) were especially responsible for sending the XLF deeper into overbought territory below the 200-day moving average.
One often overlooked option for hedging investments or trades in financial stocks is the ProShares Short Financials ETF (SEF | Quote | Chart | News | PowerRating). SEF provides inverse exposure to the Dow Jones U.S. Financials Index.
Continuing to move lower below the 200-day moving average and increasingly oversold is the ProShares UltraShort Oil & Gas ETF (DUG | Quote | Chart | News | PowerRating). The ETF was down as much as 4% late in trading on Friday before rallying to a decline of less than 2%. Strength in variety of oil and gas stocks - from Halliburton (HAL | Quote | Chart | News | PowerRating) to Nabors Industries Ltd. (NBR | Quote | Chart | News | PowerRating) - helped drive the short ETFs pullback.
Despite heavy selling in Microsoft (MSFT | Quote | Chart | News | PowerRating) on Friday, traders and investors were bidding technology ETFs higher. One beneficiary was the Technology Select Sector SPDRS ETF (XLK | Quote | Chart | News | PowerRating), which closed at its highest levels of the year and is increasingly overbought below the 200-day moving average.
Health care stocks continued to face strong selling pressure during Friday trading, leading to lower levels for health care related ETFs like the Vanguard Health Care ETF (VHT | Quote | Chart | News | PowerRating) and the Health Care Select Sector SPDRS (XLV | Quote | Chart | News | PowerRating), both of which closed lower for a second consecutive session.
Pulling back for a sixth consecutive session above the 200-day moving average was the iShares Barclays TIPS Bond ETF (TIP | Quote | Chart | News | PowerRating). The ETF is now more oversold than at any point since breaking out above the 200-day moving average in mid-March.
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